They already lost some major players due to the state capping rates https://www.foxbusiness.com/lifestyle/california-insurance-c... will all insurance companies stop coverage, raise rates or reduce what they cover?

The only other option that comes to mind is to make the improvements and try to achieve favorable rental rates to push the story that 2 BR homes rent for a premium because its unique.

What’s your success rate with mentees?

There are many STRs that do quite well in the suburbs of major cityies Off the top of my head, I can think of one of the STRs we manage that is 40 mins outside of Dallas and it has a great occupancy rate.

If you have large debt with a high interest rate, I would consider paying that off before getting started investing in real estate. 

So the choice of tenant would be key.On the flip side, reasons to hold: a very low mortgage rate; probably not the case. 

They're $99, rated 4.5 stars and I've never had a problem with one. 

Even though interest rates are high, we have a big Mircron plant coming here as part of the CHIPS act so that could boost housing demand in the coming years.I don't know the SYR market, but I did a quick search for duplexes somewhat outside of the city, and found this: https://www.realtor.com/realestateandhomes-detail/7300-Lakes....

The bank will make you leave 25% equity in the property - but you also still want the property to at least cash flow some - so be careful how much equity you pull out / new debt you take on.I would do a cost benefit analysis of what your actual gain is in cash-flow on buying a new property with a (currently) higher interest rate (if financing), versus just holding on to the current appreciated property and enjoying that cash flow.All the best!

McKinney is thriving, but so are other parts of North Texas, and a broader perspective could reveal other great opportunities.Here’s what I’ve observed managing a significant number of rentals in the area:Bedrooms and Layouts:3-bed, 2-bath homes consistently attract the largest pool of tenants and have the highest occupancy rates.4-bedroom homes have grown in demand, especially with the rise of remote work, as tenants look for extra space to use as a home office.Square footage is less critical than number of beds and baths.Supply and Demand:McKinney’s growth is driving demand, but the quality of the location matters greatly.